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Analysts expect the Rumpel Felt Company to generate EBIT of $ 3 0 million annually in perpetuity ( starting in one year ) . Rumpel

Analysts expect the Rumpel Felt Company to generate EBIT of $

30

million annually in perpetuity

(

starting in one year

) .

Rumpel is all equity financed and stockholders require a return of

10 % .

Rumpel operates in Utopia where corporate taxes are zero. What is the value of the Rumpel Felt Company?

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